Study On Residential Market Behavior Of Individual Investment In Jinan City

In recent years, China's experienced fast economic development. The increased disposable income by residents has considerably strengthened the private capital in China, which now is in needs of finding investment channels. Meanwhile the stock market and other investment channels are at a low ebb. All these circumstances formed the background of the enlargement of property investment demand. People's demand for residential property are more stable than for the other types of real estate. After the purchase, residents can make stable profits by resale or lease, which displays the process of property consumption, preservation, appreciation and return of interests with less risk. Therefore, the higher-yielding investment in residential property has been more favored by residents than any other financial product.In its 11th- Five-Year- Plan period, Jinan is undertaking rapid urbanization process, which stimulates people's particularly great demands for residential property and results in the rapid increase of house prices. With the understanding that it is impossible to purchase houses at a lower price, the Jinan residents chose to invest more in residential property.In order to ensure Jinan City of sustainable and healthy development of the property market and the smooth implementation of the " Comfortable Housing Project ", to enrich the theory of personal investment in real estate, it is necessary to study its residents'investment behaviour towards residential property.This study is carried out on the basis of the Investment Psychology Theory, Real Estate Investment Theory, Behavioral Finance Theory, Family Financial Management Theory and other related financial theories, among which the first two theories are applied as the important background knowledge.This paper studies the residential property investment behavior of Jinan residents. and nails down the operations of Jinan real estate market, reveals the influence of property investment behaviour on the real estate market. It enriches the real estate investment theory, and will help the government to efficiently regulate and control national macro-economy, formulate policies, coordinate various sectors in the economy, and promote the standardization and sustainable development of the real estate market.On the basis of the related theories on residential investment behavior, this paper studies housing market. It also analyzes the current status of the residential real estate market of Jinan City, testifying the market with Herding Behavior method. It analyses the current personal investment and the residential environment, and studies the macro-control on the impact of the property market in Jinan. The article also judged the individuals from various residential real estate investment in the existence of risk.In order to complete the paper better, a questionnaire was developed, and Jinan City residential market individual investment behavior was surveyed. In this paper, Jinan City real estate market was herding tested, and the article proved the residential market in Jinan City with Herding Behavior.